Chip market growing at 23%

India’s semiconductor market grew by 28.3% in 2010, according to India Semiconductor Association (ISA), the trade body representing Indian Electronic System Design and Manufacturing (ESDM) industry.

According to ISA— Frost and Sullivan India semiconductor market update 2010-2012 — released on Wednesday, the total semiconductor market (TM) in India was at $6.6 billion in 2010 and is expected to be $9.9 billion in 2011. This is estimated to grow at a compounded annual growth rate (CAGR) of 22.7% from 2010 to 2012.

Mobile devices, telecommunications, information technology and office automation (IT & OA) are the key drivers of the semiconductor market in India contributing around 82% to semiconductor TM in 2010.

“We need local manufacturing to reduce the import bill of electronic components and are quite optimistic about the government’s efforts to encourage local manufacturers,” said Pradip K Dutta, chairman, ISA.

“Local manufacturing of telecom equipment by OEMs and EMS companies propel related semiconductor consumption by 50% during 2010 to 2012”, it said.

“The semiconductor industry in India presents immense potential to contribute significantly to the country’s growing economy. In addition, there are strategic reasons for a country of our size and GDP to develop domestic electronics manufacturing ecosystem.”